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Saturday, February 23, 2008

Challenge Accounts: Trade - March E-Mini S&P 500 Put

Challenge Accounts:

Investing Account Balance: $131.14

Stock / Futures Trading Balance: $604.89
Online Savings Balance: $2.06

Wild spike up on volume at the end of Friday. While I was watching it, I was thinking a few things.

I didn't get the volatility out of the market that I was hoping for. Theta was losing value by the day. Wild jump up near the end that put us back up in the same stupid channel we've been in for 8 days. Weekend approaching. I had already been in the trade for about 7 days, which is my swing trading time frame. We have a seasonal spike up in the stock market approaching.

So I dumped out of the trade. I exited the e-mini S&P 500 Put at 0.50, which means I lost 1.00 on this trade, or $50.00 before commissions, and approximately $28.60 in commissions, leading to an overall loss of $78.60 or so. I'm looking at an Orange Juice trade in the near future. Depends on how things shape up on that route.

The following video presents the "Week in Review"

* * *

Investing Account Balance: $131.14
Stock / Futures Trading Balance: $604.89
Online Savings Balance: $2.06

Total Trades and Investments: 2
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 0%
Average Reward: $0.00
Risk Reward Ratio: N/A

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

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